In the mist of iPhones and Android phones, Blackberry (NASDAQ:BBRY) needs to make its mark. Even though Blackberry (NASDAQ:BBRY) targets its device at the professional and sophisticated class, it still has lost its popularity in general. So, in order to gain a competitive edge Blackberry (NASDAQ:BBRY) launched a new smartphone line, the Passport. With additional and latest features of five inch screen and QWERTY keyboard, CEO John Chen hopes the troubled Canadian company would be able to overcome these turbulent times.

According to analysts Mike Koza, of Marketocracy, who has 16% of his portfolio invested in Blackberry (NASDAQ:BBRY), believes that the new Passport Blackberry (NASDAQ:BBRY) is an impressive move by Blackberry (NASDAQ:BBRY). The 200,000 unit sales in the first two days is the proof of that even though the smartphone has an expensive price tag of $800.

Mike further points out factors that will determine stocks to double. These include:

-          Not claiming revenues until there is an end-user purchase instead of carrier purchase. Their recent claim was of $2.1 million in revenues.

-          Neutral cash flow

-          Getting the gadgets to their customers

-          Growth in revenue

According to Mike, Blackberry (NASDAQ:BBRY) is taking these factors into consideration. The cash flow is becoming neutral. Even though in the past few years Blackberry (NASDAQ:BBRY) sales have faced problems but the new Passport initial sales seems to lift the scale. As far as service revenues go, Blackberry (NASDAQ:BBRY) once had the luxury to claim 80% gross margins but with years that too has declined. The company needs to buckle up and address the core issues. In the present scenario, the best response for Blackberry (NASDAQ:BBRY) is to focus on their hardware. And once that is done, they will be able to sell 10 million units in no time. This would be the best sort of comeback for Blackberry (NASDAQ:BBRY); whereas the high margins could be achieved through service contracts through softwares. According to SEC filings the company expects $250 million in revenues through software from Blackberry (NASDAQ:BBRY) Enterprise Server, technical support along with other value added services for fiscal 2015 with expectations to double the revenues in fiscal 2016.

But these SEC statements seem to have taken Mike by surprise. He believed it would have been better to use the strategy to under-promise and over-deliver but Blackberry (NASDAQ:BBRY) seems to have high expectations for the future.

Let’s assume for a minute, this plan for Blackberry (NASDAQ:BBRY) falls through. The sales margin produces gross margin of 70%, growing the division to $500 million, this would result in $350 million worth of gross profits. This scenario would only work once the service and hardware divisions stabilize.

Looking at the consumers of this era, one does wonder where does Blackberry (NASDAQ:BBRY) stand in comparison to iPhone. But it seems the two cater to entirely different markets. Blackberry (NASDAQ:BBRY) is the professionals to make their daily business tasks easier, for example businessmen, lawyers, police, government officials and etc. Whereas, iPhone users seem more concerned with updating their Facebook (NASDAQ:FB) or Twitter (NYSE:TETR) accounts.

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